chapter 11 menu engineering principles of food, beverage, and labour cost controls, canadian edition
TRANSCRIPT
Chapter 11
Menu Engineering
Principles of Food, Beverage, and Labour Cost Controls,Canadian Edition
Learning ObjectivesAfter reading this chapter, you should be able to:
• 11.1 Complete a menu engineering worksheet and analyze the resulting information.
• 11.2 Define the terms star, dog, plowhorse, and puzzle as they relate to menu analysis.
• 11.3 Prepare a chart showing stars, dogs, plowhorses, and puzzles.
• 11.4 Describe appropriate action to take for stars, dogs, plowhorses, and puzzles when changes are made to the menu.
Menu Engineering
• Menu Engineering is a technique for analyzing menu sales.
• Provides helpful information for item evaluation relative to:• Popularity• Contribution to bottom-line dollars
• Best explained by example
Menu Engineering WorksheetA B C D E F G H L P R S
Entrée #
Sold
Menu
Mix%
Food
Cost
Sales
Price
Item
CM
Menu
Cost
Menu
Rev.
Menu
CM
CM
Cat.
MM
Cat.
Class
GS 72 $4.65 $14.45
Steak 130 $5.35 $18.95
Seafood 94 $7.25 $22.50
Tofu 154 $4.20 $14.45
Pork 125 $6.90 $16.45
Total
N =
Addtl Calcs.
I =
J =
M =
Addtl. Calcs.
K = O =
Q =
Menu Engineering WorksheetA B C D E F G H L P R S
Entrée # Sold
Menu Mix%
Food Cost
Sales Price
Item CM
Menu Cost
Menu Rev.
Menu CM
CM Cat.
MM Cat.
Class
GS 72 12.52% $4.65 $14.45 $9.80 $334.80 $1040.40 $705.60 L L Dog
Steak 130 22.61% $5.35 $18.95 $13.60 $695.50 $2463.50 $1768.00 H H Star
Seafood 94 16.35% $7.25 $22.50 $15.25 $681.50 $2115.00 $1433.50 H
H Star
Tofu 154 26.78% $4.20 $14.45 $10.25 $646.80 $2225.30 $1578.50 L H PlowH
Pork 125 21.74% $6.90 $16.45 $9.55 $862.50 $2056.25 $1193.75 L H PlowH
Total N = 575
100%
Addtl Calcs.
I = $3220.8
J = $9900.45
M = $6679.35
Addtl. Calcs.
K = O = $11.62
Q = 14%
Index of Worksheet Calculations
• A = Menu items
• B = Number of menu item sold
• C (Menu mix %) = B ÷ Total # entrées sold
• D (Food cost) = Standard cost of each item
• E (Sales price) = Menu price of each item
• F (Item CM) = E – D
• G (Menu cost) = D X B
• H (Menu revenues) = E X B
Index of Worksheet Calculations
• I = Combined menu cost of all items
• J = Combined menu revenues of all items
• K (Food cost %) = I ÷ J
• L (Menu CM) = F X B
• M = Combined menu CM of all items
• N = Total items sold
• O (Average contribution margin) = M ÷ N
Index of Worksheet CalculationsP (Contribution margin rating)
If the item’s F > O, item is designated a high contribution margin rating;if the item’s F < O, it is designated a low contribution margin rating
Q = (1 ÷ total number of menu items) X 0.7R (Menu mix rating)
If the item’s C > Q, item is designated a high menu mix rating;if the item’s C < Q, then it is designated a low menu mix rating
S = Menu item classification
Menu Engineering Categories
Plowhorse
High Popularity
Low Contribution Margin
Star
High Popularity
High Contribution Margin
Dog
Low Contribution Margin Low Popularity
Puzzle
High Contribution Margin
Low Popularity
A visual method to display item popularity and profitability.
What To Do With The Results• Stars: Profitable & popular; possible to increase
prices without affecting volume
• Dogs: Unprofitable & unpopular; remove from menu unless there is:
• reason for continuing to sell
• profitability can somehow be increased
• Plowhorses: Unprofitable but popular; keep but, increase CM without decreasing volume
• Puzzles: Profitable but unpopular; keep on menu, increase their popularity
Key Terms• Average contribution margin, p. 289 • Dog, p. 291• Menu contribution margin, p. 289• Menu engineering, p. 286• Menu mix percent, p. 287• Plowhorse, p. 291• Puzzle, p. 291• Star, p. 291
Chapter Web Links
• Silverware POS: www.silverwarepos.com
• Compeat: www.compeat.com
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